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Hoping for a drop in Milwaukee property prices in 2025? Don’t count on it.
Despite economic shifts, Milwaukee's real estate market is poised for growth, driven by increasing demand and limited housing supply.
Let's explore why property prices in this city are expected to rise in 2025.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By thoroughly examining this data, we draw our own conclusions, which we share at the end of this blog post. Enjoy the read!
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
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- Yes, investing in real estate is a solid option in 2025 in Milwaukee
1) In Milwaukee, there are about 0.45 homes for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.45 home per inhabitant in Milwaukee suggests a limited housing supply relative to the population.
When housing supply is low, and demand remains steady or increases, it often leads to rising housing prices. In Milwaukee, a factor that locals know is the city's ongoing revitalization efforts in neighborhoods like the Third Ward, which attract more residents.
This influx of people, combined with the limited number of homes, can create competition among buyers, driving prices up. Additionally, Milwaukee's growing job market in sectors like healthcare and education further fuels housing demand.
If the number of homes per inhabitant were to increase to around 0.6 or higher, it might indicate a more balanced market, potentially stabilizing prices.
Source: USCensus
2) Redfin considers the Milwaukee real estate market to be "very competitive."
Signal strength: strong
The fact that Redfin ranks the Milwaukee real estate market as "very competitive" is a strong indicator that housing prices are likely to rise in 2025.
When a market is labeled as "very competitive," it means that there is a high demand for properties, often leading to bidding wars and quick sales. In Milwaukee, the most competitive properties are single-family homes in suburban areas, which are highly sought after by families looking for more space and a quieter environment.
These suburban areas offer good schools, parks, and community amenities, making them attractive to buyers who prioritize quality of life. As more people seek these types of properties, the demand increases, which typically drives up prices.
If the market were to become "less competitive," with more properties available than buyers, it could signal a potential decrease in housing prices.
Source: Redfin
3) Three major websites confidently predict that home prices in Milwaukee will rise in 2025
Signal strength: strong
There are three major websites forecasting a positive growth for home prices in Milwaukee in 2025, which is a promising signal for potential investors.
Among these forecasts, Realtor is the most optimistic with a prediction of a 5.70% increase in home prices, followed by Redfin at 4% growth, and Zillow with a more conservative estimate of 2.60% increase. The significant gap between these forecasts suggests varying levels of confidence in the market's potential.
While these predictions are encouraging, it's important to remember that forecasts should be taken with caution as they are based on assumptions and models that may not fully capture future market dynamics. Therefore, we will also rely on strong, reliable, and actual data to make a well-informed investment decision.
If these forecasts were to predict a negative growth or a decline in home prices, it would signal a potential downturn in the market.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
4) Milwaukee's "Livability" score of 79 indicates it's a great place to live
Signal strength: moderate
The livability score of 79 in Milwaukee is considered good because it reflects a balance of factors that make the city attractive to residents.
One key characteristic is Milwaukee's vibrant cultural scene, which includes a rich array of festivals, museums, and theaters that draw both locals and tourists. Additionally, the city boasts affordable cost of living compared to other major cities, making it an appealing choice for families and young professionals. Furthermore, Milwaukee has a strong sense of community, with numerous neighborhood associations and community events that foster a welcoming environment.
These factors contribute to the city's overall appeal, suggesting that increased demand for housing could drive prices up in 2025. As more people recognize the benefits of living in Milwaukee, the real estate market is likely to see growth as demand outpaces supply.
However, if the livability score were to drop below 70, indicating a decline in these positive attributes, it might signal a potential decrease in housing demand and prices.
Source: AreaVibes
5) Selling a house in Milwaukee now takes 40 days, compared to the previous 50 days
Signal strength: moderate
In the Milwaukee housing market, the time it takes to sell a house has decreased from around 50 days to now just 40 days. This change suggests that homes are selling faster, which often indicates that buyer demand is increasing.
When demand goes up, it typically leads to higher competition among buyers, which can drive up prices. This is a common pattern in real estate markets, where reduced selling times often correlate with rising prices.
For potential investors, this trend is a signal that the market is heating up and could be a good time to consider investing. However, if the selling time were to increase back to 50 days or more, it might suggest a cooling market instead.
Source: Redfin
6) In Milwaukee, nearly half of all sales end up selling for more than the listing price
Signal strength: moderate
In Milwaukee, around 47% of sales close at a price higher than the listing price, which is a strong indicator of a competitive housing market.
This means that nearly half of the homes are selling for more than what sellers initially ask for, suggesting that demand is outpacing supply. When demand is high and supply is limited, prices tend to rise as buyers are willing to pay more to secure a property.
Such a trend often leads to increased property values over time, making it a potentially lucrative market for real estate investors. If you're considering investing, this could mean higher returns on your investment as property values appreciate.
However, if the percentage of sales closing above the listing price were to drop significantly, say below 20%, it might indicate a cooling market where prices could stabilize or even decrease.
Source: Zillow
7) Milwaukee home values have risen by 9.5% since last year, and this trend may persist
Signal strength: moderate
The fact that home values in Milwaukee have already changed by 9.5% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is rising, and if this trend continues, it could mean higher prices in 2025 for those looking to invest in real estate.
Currently, the median home price in Milwaukee is around $203,164, which is relatively affordable compared to other markets. Additionally, the median sales price per square foot is about $139, indicating a reasonable cost for space, which can attract more buyers and investors.
These statistics show that Milwaukee's housing market is gaining momentum, making it an attractive option for potential investors. If the trend of increasing home values continues, it could lead to significant returns on investment in the coming years.
However, if the home value change were to drop below 3%, it might suggest a cooling market, which could alter the current positive outlook.
Source: Redfin
8) Milwaukee's median home price is significantly lower, at 53% less than the national average
Signal strength: minimal
The fact that Milwaukee still has a median home price 53% below the national average suggests that there is significant room for growth in the housing market. When a market is priced well below the national average, it often attracts investors looking for affordable opportunities with the potential for appreciation.
In Milwaukee, the most expensive properties are likely to be luxury condos in the downtown area, where demand is high due to proximity to amenities and business centers. On the other hand, the cheapest properties are probably older single-family homes in the outskirts of the city, where development is less dense and demand is lower.
As more people and businesses move to Milwaukee, the demand for housing is expected to increase, driving up prices. This is especially true if the city continues to develop its infrastructure and attract new industries, making it a more desirable place to live and work.
If Milwaukee's median home price were to rise to only 10% below the national average, it might indicate that the market has reached a saturation point, and further price increases could be limited.
Source: Zillow
9) A local in Milwaukee could afford a house in about 3.8 years, which is reasonable
Signal strength: minimal
In Milwaukee, it currently takes around 3.8 years for a local to afford a house, which is considered reasonable. This indicates that the housing market is relatively accessible, suggesting that housing demand might increase as more people find it feasible to buy homes.
With a median household income of approximately $52,992, residents have a decent earning capacity. Coupled with a median home price of about $203,164, this affordability balance can attract more buyers, potentially driving up prices.
As more locals and investors see the opportunity, the increased demand could lead to higher prices in the future. This scenario is likely to unfold if the economic conditions remain stable and interest rates do not rise significantly.
If the time to afford a house were to increase to over 5 years, it might indicate that prices are becoming too high, potentially cooling the market.
Source: USCensus
10) In Milwaukee, home prices have risen by an average of 6.9% each year over the past decade
Signal strength: minimal
The fact that home prices in Milwaukee have appreciated at an average rate of 6.9% over the last decade is a strong signal for potential investors. This consistent growth rate suggests a history of demand and price growth, which can create favorable conditions for future increases.
While it's important to remember that past performance doesn’t guarantee future results, historical trends can still provide valuable insights. A positive 10-year average appreciation rate indicates that the market has been steadily increasing in value, which can be encouraging for those considering investing in real estate.
However, it's crucial to consider other factors that might influence future prices, such as economic conditions and local developments. By analyzing these elements alongside historical data, investors can make more informed decisions about the potential for continued growth in the housing market.
If the average appreciation rate were to drop significantly, say below 2% over a similar period, it might suggest a different trend and warrant a more cautious approach.
Source: NeighborhoodScout
So, are prices going to climb in Milwaukee in 2025? Yes, they are!
Milwaukee's housing market is poised for price increases in 2025 due to several compelling factors.
Firstly, the city has a limited housing supply with only 0.45 homes per person, which naturally drives up prices as demand outstrips supply. The ongoing revitalization efforts and a growing job market further fuel this demand, making the market more competitive. Redfin's classification of Milwaukee as "very competitive" underscores this, as high demand often leads to bidding wars and quick sales.
Additionally, three major websites predict a rise in home prices, with Realtor forecasting a 5.70% increase. The city's livability score of 79 and the fact that 47% of sales exceed listing prices further indicate a strong market. Homes are selling faster, now taking 40 days instead of 50, and home values have risen by 9.5% since last year, suggesting a continued upward trend.
Milwaukee's median home price is 53% below the national average, offering room for growth. With locals able to afford a house in 3.8 years and a historical appreciation rate of 6.9% annually over the past decade, the market is accessible and attractive to buyers. These factors collectively point to a likely increase in housing prices in Milwaukee in 2025.